CPT, Carriage Paid to

CPT, Carriage Paid to (insert place of destination) is an IncoTerm which can be used for any Transport mode, or where there is more than one Transport mode. The seller arranges the customs clearance, pays the export fees and arranges and pays a carrier that delivers the goods at a pre-arranged place. At the moment the (first) carrier takes the goods, he takes over the risks, costs and responsibilities of the seller. He carries the responsibilities, until he has delivered the goods. Carriage Paid To is also an IncoTerm that is being used more and more. Terminal Handling Charges (THC) are charges made by the terminal operator. These charges may or may not be included by the carrier in their Freight rates – the buyer should enquire whether the CPT price includes THC, so as to avoid surprises. The buyer may wish to arrange insurance cover for the main carriage, starting from the point where the goods are taken in charge by the carrier – NB this will not be the place referred to in the Incoterms rule, but will be specified elsewhere within the commercial agreement. Particularly in container transport, it is often recommended to apply CPT instead of CFR. Source International Chamber of Commerce (ICC).

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